Re: OATI may have bids/offers on MRD

Update: Based on Charles' great MRD presentation to Power Trading, the
traders have some ideas about this. I'll provide more info as soon as I get
it from them.

To: Charles Yeung/HOU/ECT@ECT
cc: Sarah Novosel/Corp/Enron@Enron, Richard Ingersoll/HOU/ECT@ECT, Joe
Hartsoe/Corp/Enron@Enron, Shelley Corman/ET&S/Enron@ENRON, Richard
Shapiro/HOU/EES@EES, Steven J Kean/HOU/EES@EES, Lloyd Will/HOU/ECT@ECT
Subject: Re: OATI may have bids/offers on MRD

We need to determine whether Enron should work toward a bulletin board for
MRD on Enron Online if OATI is already working on one. If so, we would need
to act quickly in order to compete with OATI for the summer (if we even want
to do that since OATI had a very good tagging agent that Enron's tagging
system really didn't compete with). OATI already has the online auctioneer
and is working on adding the MRD bids/offers.

Also, if Enron Online wants Enron in the middle of every transaction as a
sleeve (unlike a third party bid/offer platform), then we need to consider
that since all MRD transactions are physical, this will add to the FERC costs
that Enron will pay (at least until we get a final rule from FERC on costs).
Additionally, the market may not take to MRD as well if Enron is the sleeve
on all transactions.

To: Christi L Nicolay/HOU/ECT@ECT
cc: Sarah Novosel/Corp/Enron@Enron, Richard Ingersoll/HOU/ECT@ECT, Joe
Hartsoe/Corp/Enron@Enron, Shelley Corman/ET&S/Enron@ENRON, Richard
Shapiro/HOU/EES@EES, Steven J Kean/HOU/EES@EES
Subject: Re: OATI may have bids/offers on MRD

The OATI folks have been pretty cose to the NERC MRD activities.

I have provided Nelson Mueller (OATI) with some thoughts on how to simplify
the MRD set-up process. (This involves the steps marketers must perform to
figure out what generation and how much is needed for redispatch.)

I knew that OATI has been responsive to facilitating the MRD procedures in
the ETAG software and were interested in being a bulletin board for the bids
and offers. However, would OATI provide more than just a bulletin board? I
suspect they will not back up these products financially llike Enron OnLine
could.

Additionally, NSP's generator marketer has asked me if our traders would be
interested in a "contracted one-stop" MRD service utilizing NSP's uncommitted
reserve generation capability. These units are on the "good" side of the
Eau-Claire Arpin interface in MAPP/MAIN. I will offer this in my
presentation tomorrow to the traders.

From: Christi L Nicolay 04/24/2000 01:13 PM

To: Charles Yeung/HOU/ECT@ECT, Sarah Novosel/Corp/Enron@Enron, Richard
Ingersoll/HOU/ECT@ECT, Joe Hartsoe/Corp/Enron@Enron, Shelley
Corman/ET&S/Enron@ENRON, Richard Shapiro/HOU/EES@EES, Steven J
Kean/HOU/EES@EES
cc:
Subject: OATI may have bids/offers on MRD

Charles--The OATI group was here today to teach EPMI about the OATI products
that we are using. OATI said that it is investigating whether to implement a
generation bid/offer service platform on OATI. Charles--Any thoughts?

Note: The fact that Enron has contracted with OATI for services is
"confidential."